IRS and Treasury Publish Final Regulations for Section 48 Investment Tax Credits

On December 18, 2024, Cravath prepared a memo for its clients entitled “IRS and Treasury Publish Final Regulations for Section 48 Investment Tax Credits.” The memo examines the U.S. Department of the Treasury and the Internal Revenue Service’s recently published final regulations regarding the energy credit available under Section 48 of the Internal Revenue Code.

Proposed regulations regarding the credit had been published in a November 2023 notice of proposed rulemaking. The final regulations clarify and modify rules for determining whether investments in certain energy property are eligible for the energy credit, including in relation to qualified biogas property, energy storage technology, hydrogen energy storage property and thermal energy storage property.

Please click here to read the memo.